Coin360 Daily Dispatch | Crypto Market Updates & Highlights | December 26, 2023

Bitcoin and Ethereum Witness Minor Declines

Bitcoin's price fell 2% to $42,500 amid a market selloff, triggering $167 million in liquidations. Ethereum also dropped 2% to $2,230. Solana hit a 20-month high at $126 before retracing, buoyed by increased gas fees and airdrops. The global crypto ETP market, with 150 products, holds $50.3 billion in assets. U.S. approval of spot Bitcoin ETFs could double this investment. Mt. Gox's impending Bitcoin payments may further impact the market, potentially increasing sell-offs.

Ethereum's Supply Shows Long-Term Holder Growth

On-chain data shows over 70% of Ethereum supply unmoved for over a year, a new record. Long-term holders own the majority, rarely selling despite market fluctuations. The rise in HODLer supply indicates accumulation from the bear market, with Ethereum surpassing Bitcoin in growth. Currently, over 70% of Ethereum's circulating supply is held by long-term holders.  

Mt. Gox Begins Repayment After Long Hiatus

Mt. Gox, a major Bitcoin exchange, has initiated repayments to creditors following a tumultuous decade. The process began with small yen deposits to PayPal accounts, with a repayment plan stretching into 2024. Mt. Gox's 2014 closure resulted in the loss of over 800,000 Bitcoins and underscored the need for enhanced security and regulations in the crypto space.  

Hong Kong Tightens Spot Crypto ETF Guidelines

The Hong Kong Securities and Futures Commission and Monetary Authority released requirements for spot crypto ETF approval, targeting products with over 10% crypto holdings. The guidelines mandate regulatory compliance, competent staff, approved token lists, and ban leveraged exposure. The move follows increased regulatory presence after the JPEX scandal and aims to limit access to certain crypto offerings.  

Grayscale Announces Major Board Changes

Grayscale's recent SEC filing revealed a significant board reshuffle, with Barry Silbert and Digital Currency Group President Mark Murphy stepping down. Mark Shifke will replace Silbert as chairman. Grayscale, managing over $34 billion in assets, is best known for its Bitcoin Trust. The Trust currently trades at a 5.63% discount to the underlying asset.  

FTX US Faces Legal Challenges Over Acquisition

FTX US's $220 million Embed acquisition faces scrutiny, with Sam Bankman-Fried potentially relinquishing rights to assets. Ripple Singapore successfully claims $11.4 million in FTX assets, marking a significant legal victory amid its SEC dispute. These developments are pivotal in the ongoing FTX bankruptcy saga and Ripple's market positioning.

Mark Cuban's Significant MATIC Token Transfer

Billionaire Mark Cuban transferred 2.82 million MATIC tokens worth $2.56 million from Polygon PoS staking to Coinbase. Despite a 5% dip in MATIC's price, it then bounced back to record a 6.5% increase in the last 24 hours at $0.95 and has a 32% increase in trading volume. The resistance at $0.92 is currently limiting further upward movement.  

Bitcoin's 2023 Surge with Stablecoin Dominance

In 2023, Bitcoin surged 172%, with stablecoins like USDT dominating. Glassnode notes stablecoins as key liquidity providers. Despite a 26% supply drop since March 2022, October saw a resurgence. Ethereum's stablecoin value fell 34%, while Tron's rose 57.7%. Tron's growth is notable in Latin America, driven by low costs and high speeds.

Crypto VC Funding Declines, Future Optimism Remains

In 2023, crypto VC funding dropped by 68% to $10.7 billion compared to 2022. Pre-seed, seed, and Series A startups received the majority of investments. NFTs/gaming, infrastructure, and web3 sectors were the most funded. The year saw 1,819 deals, 32% less than in 2022. Despite the decline, a surge in funding and deals is expected in 2024.  

China Cracks Down on Illegal Crypto Exchange Ring

China's State Administration of Foreign Exchange (SAFE) has shut down an illegal crypto exchange ring that funneled 15.8 billion yuan ($2.2 billion) through over 1,000 bank accounts. The operation, spanning 17 provinces, involved purchasing crypto on overseas exchanges to provide yuan exchange services. SAFE warns against involvement in such illegal trades.  

Asia's Leading Role in Crypto Regulation

In 2023, Hong Kong and Singapore lead Asia's crypto regulation. Hong Kong initiated a licensing regime for virtual asset trading platforms and expanded ETF engagement. Singapore granted licenses to firms like Coinbase and Circle. Japan, South Korea, and Taiwan also implemented relevant regulations. Crypto activity and regulatory updates signify Asia's growing prominence in the global crypto landscape.  

zkSync Suffers Temporary Outage on Christmas

On Christmas, zkSync faced a five-hour outage due to an automated safety protocol bug. The issue, linked to state updates, was resolved without jeopardizing funds. zkSync, a major Ethereum layer-2 network, emphasizes the need for rigorous testing in blockchain technology, maintaining a significant role in Ethereum's scaling ecosystem.

Telcoin Plummets After $1.3 Million Exploit

Telcoin experienced a 42% drop at one point following a $1.3 million exploit linked to a Polygon wallet implementation, affecting users who hadn't initiated transactions, leading to a temporary app freeze. PeckShield confirmed the incident, causing investor unease and a spike in trade volume. TEL's value stands at $0.001826, with a 2,775% surge in trade volumes to over $28 million.  

Tether Treasury Adds 1 Billion USDT to Reserves

Tether Treasury generated 1 billion USDT tokens for Ethereum reserves, emphasizing strategic inventory management. The move aims to maintain liquidity and stability without flooding the market. CEO Paolo Ardoino clarified the tokens are authorized but not issued, reinforcing Tether's commitment to meet market demands and sustain investor confidence in the crypto ecosystem.  

Crypto Airdrops Make Significant Impact in 2023

In 2023, 13 crypto airdrops made the top 50, totaling $4.56 billion at ATH prices. Arbitrum led with $1.97 billion, followed by Celestia at $0.73 billion and Blur at $0.45 billion. A decreased number of airdrops in 2023 compared to 2021 and 2022 was noted, but the future potential of these new tokens remains promising.  

Crypto Industry Ramps Up Political Spending

In the lead-up to the 2024 US elections, the crypto industry has significantly increased its political spending, with notable donations from top players. The industry seeks to influence regulatory policies and support pro-crypto candidates, aiming to counteract potential stricter regulations. However, opposition voices, including Senator Elizabeth Warren, raise concerns about national security and criminal activity related to digital assets.  

Blockchain Gaming's Global Hotspots in 2024

Delphi Digital's report "The Year Ahead for Gaming 2024" identifies the Philippines, Nigeria, and Pakistan as top blockchain gaming markets. Blockchain gaming surpassed DeFi in on-chain transactions in 2023. The report notes the emergence of the OP Stack framework for on-chain gaming development, a rise in Web3 mobile gaming interest, and growing involvement of major gaming companies in the Web3 market.  

Top Altcoin Gainers and Losers

Gainers:

PancakeSwap CAKE (+23.77%)

Sei SEI (+17.78%)

Binance Coin BNB (+12.00%)

Losers:

Bonk BONK (-11.63%)

Solana SOL (-8.23%)

Injective INJ (-7.65%)